CFTC Order Imposes Civil Monetary Penalty of $159,000 and a 10-year
Trading Ban

Washington, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC)
announced today the issuance of a consent order settling an
administrative enforcement action against former commodities trader Kevin
Marshburn of Tampa, Florida.

The consent order finds that, at various times from May 1993 through March
1994, Marshburn -- then an account executive in Prudential Securities
Inc.’s (PSI) Orlando, Florida, office -- accepted or caused others to
accept customer orders without creating required written records of the
orders that included account identification information or order times.
Marshburn then entered, or caused others to enter, the orders onto the
trading floor without providing necessary account identification, according
to the order.

The order further finds that after the orders were executed, Marshburn
allocated the trades that had been entered without account identification,
either to his personal account or to one or more of three specific customer
accounts. Marshburn allocated trades made at better prices, or profitable
round-turn trades, to his personal account, and trades made at worse prices,
or less profitable or losing trades, to the customer accounts, thereby
defrauding his customers, the order finds. Finally, the order finds that
Marshburn aided and abetted his employer’s failure to retain and
produce unfilled or canceled customer orders prepared during the period May
1993 through March 1994.

Without admitting or denying the claims, Marshburn consented to the entry of
the CFTC order, which makes findings that Marshburn violated antifraud and
recordkeeping sections of the Commodity Exchange Act and CFTC regulations,
and:

orders Marshburn to cease and desist from violating the provisions of
the CEA set forth above;

requires Marshburn to pay a civil monetary penalty of $159,000 pursuant
to a payment plan;

prohibits Marshburn from trading on or subject to the rules of any
contract market for ten (10) years; and

orders Marshburn to comply with his undertakings, including an
undertaking never to seek registration with the CFTC in any capacity.

Marshburn was the last remaining respondent in this action. The Commission
settled with PSI in October 2002 and with the two other former PSI account
executives who worked with Marshburn in September 2003. Those account
executives, Kathleen Chiappone and Kathryn Sarabasa, had been charged with
aiding and abetting PSI’s recordkeeping violations. In addition to
imposing cease and desist orders, the Commission ordered them to pay civil
penalties of $8,000 and $5,000, respectively, and Sarabasa further was
required to comply with her undertaking not to seek Commission registration
for two years.